SC asks Satyam for Rs 617-cr bank guarantee by April 25

The Supreme Court on Friday directed Mahindra Satyam to make its presentation before the Central Board of Direct Taxes (CBDT) relating to its tax dispute within two weeks, and also asked it to furnish a bank guarantee of Rs 617 crore by April 25.

“Within two weeks the petitioner company (Mahindra Satyam) would file a comprehensive petition making its representation before the CBDT giving all requisite information for re-assessment of income for year 2003-2004 to 2008-09,” the court said.

“On the receipt of representation, the CBDT would hear and decide the matter within two weeks.”

The court also said the CBDT while passing its order would give proper reasons for it.

The Supreme Court also said the accounts of the company will be defreezed subject to payment of a bank guarantee of Rs 617 crore before its registry by April 25.

The apex body also made it clear that “the chairman of Mahindra Satyam would file an undertaking within 48 hours before the registry of the Supreme Court that the company would file the bank guarantee by April 25.”

Mahindra Satyam also informed the court that it will withdraw the petition filed against the Income Tax Department in the Andhra Pradesh high court challenging its direction to pay tax.